Irish Companies warned over threat to chemical supplies in no-deal Brexit

Irish Companies that use chemicals have been urged to step up in their preparations for a no-deal Brexit. 

On the 4 October 2019, the Health and Safety Authority (HSA) published the results of the 2018 Survey on Chemical Usage, in an attempt to find out how the chemicals are managed by the Irish Companies.

As the deadline of 31 October for the UK's withdrawal from the EU draws closer, the Minister of State for Trade, Employment, Business, EU Digital Single Market and Data Protection, Pat Breen TD, has urged all businesses owners to understand their supply chain, as he launched the publication in Shannon. He said, "As the UK prepares to leave the EU, this will have a significant impact on the supply chain obligations of Irish Companies." 

He added that any businesses that handle the making, importing, supplying or use of chemicals should look to where they are getting their products, in order to determine the potential impact on their businesses. As companies that handle chemicals are particularly at risk of being unable to do business if there is no deal, it is advised that companies in Ireland act now to avoid disruptions in supply.

Yvonne Mullooly, the HSA assistant chief executive, has explained how currently, chemicals can cross national and EU borders every day without leaving the governance regime provided by the EU regulators. She has said, "People don't realise it, but chemicals are involved in every aspect of our day-to-day lives. They are used in paints, detergents, plastics, adhesive and coatings, but also in goods all around us as such as jewellery, shoes, furniture, electronic equipment and construction panels. After the UK's withdrawal from the EU, if Irish companies continue to source chemicals like these from the UK, their regulatory obligations for the goods they distribute or use could change to an importer." 

This means that if you are an Irish Company in this position, you must determine first which chemicals are being sourced in the UK - after this you must determine what measures, if any, the UK supplier has put in place in order to reduce your regulatory requirements post Brexit. 

She added, "Businesses need to know if they are sourcing chemical suppliers from the UK, and whether they need to transfer the EU Regulations to a different legal entity based in the EU-27. This should not be left to the last moment, as it can take time to address data and legal access logistics."

With these implications for the supply chain in mind, chemicals regulation is clearly a matter of crucial importance for the aerospace sector. The engine parts specialists firm normally holds two months of stock, but it has doubled it to four months for some chemical supplies - unfortunately, stockpiling gas that is used in the repair of aircraft engine components is not possible.

Oezguer Yesilkaya, the managing director and chief executive officer of the company, Lufthansa Technik Turbine Shannon, has shared how they have made plans for 31 October. They have looked at the chemical regulatory requirements needed to import gas from outside the EU. Commenting, "Right now, liquid argon gas is our biggest stock demand, and it comes from the UK. We get it in every two weeks and cannot stockpile any more of it safely in our storage unit. To prepare for Brexit, we got in touch with our gas supplier in Ireland and have learned that they have taken steps to ensure that they can get that gas swiftly from the UK. We still don't really know what will happen on the first day of Brexit but we are doing everything we can to ensure continued supplies from the UK, and would encourage other businesses to do the same. If we don't get these chemical supplies into Ireland, there is going to be an adverse effect and risk to business."

The Survey interviewed 147 Irish companies involved in the supply and distribution of chemicals, pharmaceuticals, manufacturing of chemicals, formulators, health and medical devices. The findings are provided at the following document:

• 2018 Survey on Chemical Usage.